REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE PUBLIC WORKS AND UTILITIES DEPARTMENT PROPOSED LANDFILL TIPPING FEE INCREASES
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1 July 24, 2014 REPORT TO THE CHIEF ADMINISTRATIVE OFFICER FROM THE PUBLIC WORKS AND UTILITIES DEPARTMENT ON PROPOSED LANDFILL TIPPING FEE INCREASES PURPOSE To seek Council's approval to increase tipping fees at the two City landfills. This amendment is required to bring the City in line with the newly-announced changes to Thompson-Nicola Regional District (TNRD) tipping fees and to further promote landfill diversion. Specifically being addressed in the proposed amendments are: Proposed increases in tipping fees at the landfills; Proposed differentiated tipping fee structure that encourages diversion; and Updating applicable penalty sections in municipal bylaws to address illegal refuse disposal. SUMMARY The City owns and operates two landfills, Mission Flats and Barnhartvale, where tipping fees are currently $60/tonne. Direction for waste management within the region is governed by the TNRD's Regional Solid Waste Management Plan (RSWMP), which requires that tipping fees be consistent with surrounding regional districts and standardized within the TNRD at both private and municipal facilities (Attachment "A"). In April 2014, the TNRD's Board of Directors agreed to a proposed tipping fee increase and refuse differentiation. Effective January 2015, under the new fee structure, municipal solid waste (MSW) is to be charged at $80/tonne, and demolition, land clearing, and construction waste (DLC) is to be charged at $160/tonne. There is also an incentive to separate different materials within the DLC category (wood, asphalt shingles, concrete, etc.) as "source separated" DLC waste, which will be charged a lower rate of $100/tonne. As required in the RSWMP, staff recommend that the City's tipping fees match the rate structure set out by the TNRD. Staff propose the implementation of additional differentiated fees for products that have a useful purpose with minimal processing costs. An example of this would be a fee of $20/tonne for crushable material, such as concrete, asphalt, brick, rock, and porcelain fixtures that could be used for road base and ditching rather than the elevated price of $100/tonne. 90
2 Page 2 RECOMMENDATION: That Council authorize staff to prepare bylaws, effective January 1, 2015, to amend: a) Solid Waste and Recyclables Bylaw No to: i) add applicable definitions; ii) reflect increased tipping fees; iii) establish a differential tipping fee structure at City-owned landfills; iv) update offences and penalties for illegal deposit of refuse on public lands; and b) Traffic Bylaw No , Road Right-of-way Usage Bylaw No , and Parks Regulation Bylaw No to update offences and penalties for illegal deposit of refuse on public lands. COUNCIL POLICY There is no applicable Council policy. DISCUSSION The two main categories of solid waste are MSW and DLC. MSW is regular garbage generated from homes or offices and consists of bagged garbage that is easily collected through bin service, curbside cart collection, and bins at landfills. DLC is most commonly waste generated from construction sites, demolitions, or home renovations, and includes: Gypsum; Insulation; Wood waste Roofing material Toilets/sinks Concrete Asphalt Bricks and mortar; Scrap metal; and Dirt, rocks, and stumps. It is common practice in the solid waste industry to have separate tipping fees for MSW and DLC due to the increased handling and airspace required for DLC. This report addresses the tipping fees for each category separately and further differentiates between the materials within. 91
3 Page 3 Municipal Solid Waste In 2010, tipping fees for MSW were set at $60/tonne at the Mission Flats Landfill and equivalent volume-based rates were put in place at the Barnhartvale Landfill. As approved by the TNRD's Board of Directors, effective January 2015, the rate for MSW will be increased from $60/tonne to $80/tonne. Administration recommends that the City's rates follow suit. Table 1 shows the current tipping fees of surrounding regional districts and comparable municipalities. It is clear that the tipping fees at Mission Flats landfill are no longer comparable to surrounding areas and could therefore be a target for less expensive waste disposal from customers from out of the region. Table Tipping Fees for Municipal Solid Waste (MSW) Regional District/Municipality MSW Tipping Fee (per tonne) City of Kamloops $60.00 Thompson-Nicola Regional District $80.00* Regional District of Central Okanagan $65.00 Salmon Arm, Sicamous, Revelstoke, and Golden $70.00 Squamish Lillooet Regional District (Lillooet Landfill) $78.50 Regional District of North Okanagan $90.50 Regional District of Okanagan Similkameen $95.00 Surrey, Coquitlam, North Vancouver (Wastech) $ Abbostford (Wastech) $ Fraser Valley Regional District (Hope Landfill) $ * Effective January 1, 2015 It has been almost five years since the last tipping fee increase. Demolition, Land Clearing, and Construction Waste Tipping fees for DLC waste are typically much higher than MSW. DLC is bulky material that does not compact as densely in the active face; therefore, it is more costly to transport and it consumes more landfill airspace. As with MSW, the City's DLC tipping fees have remained unchanged since 2010 at $60/tonne. For the purposes of this report, DLC is assumed to be comingled material (multiple types of DLC mixed together and/or DLC mixed with MSW), which is also referred to as non-source separated. Additionally, source-separated DLC is material that is sorted prior to arriving at the landfill. As evident in Table 2, DLC rates in Kamloops are significantly lower than in surrounding regions. 92
4 Page 4 Table Tipping Fees for Comingled DLC Regional District/Municipality Mixed DLC Tipping Fee (per tonne) City of Kamloops $60 Thompson-Nicola Regional District $160* Regional District of Central Okanagan $65-$145 ($50 additional sorting fee) Salmon Arm, Sicamous, Revelstoke, and Golden $140-$280 Squamish Lillooet Regional District (Lillooet Landfill) $156 Fraser Valley Regional District (Hope Landfill) $175 Regional District of North Okanagan $180 Regional District of Okanagan Similkameen $200-$500 * Effective January 1, 2015 It is recommended that the City increase its comingled DLC tipping fees from $60/tonne to $160/tonne. Although it is a dramatic increase, it would be on par with the TNRD and neighbouring districts. It is also proposed that the City implement a new differentiated tipping fee structure for various source-separated DLC waste. This structure will encourage landfill diversion and recycling by offering lower rates for separated materials. Table 3 displays the proposed differential tipping fee structure for various DLC waste. Table 3 - Proposed Tipping Fees for Comingled and Source Separated DLC Material Tipping fee (per tonne) Description End use of material Comingled DLC Misc. DLC (sorted) Wood Waste Source-separated DLC Gypsum Crushable Material Uncontaminated Soil $160 $100 $100 $100 $20 $10/dump truck load Mixed DLC materials (unsorted) Deposited in the active face; higher fee is due to poor compaction of material Asphalt shingles* Exported for processing new material Dimensional lumber, plywood, treated wood Chipped and used for cover material New gypsum board only Exported for processing new material Concrete, asphalt, porcelain fixtures, brick/mortar, rocks Ground and used for road building and ditching * Other products will be added as diversion programs become available. Hydrocarbon-free soil with minimal rocks/roots Used on site for cover material 93
5 Page 5 Diversion of Recyclable Materials Administration will continue to promote diversion of recyclables at City-operated landfills. The message that is communicated regularly to landfill users is to always pack their load in order to easily separate recyclables, rather than creating a "mixed load". Below is an extensive list of recyclables that are currently being recycled rather than landfilled: Appliances; Batteries (lead acid and household); Residential packaging and printed paper (PPP); Corrugated cardboard; Glass containers; Propane tanks; Scrap metal; Tires (passenger vehicle and light truck); Used oil, filters, and containers; BC Product Stewardship Material (current): - small appliances and power tools; - electronics; - paint, pesticides, and flammables; - lights; and - beverage containers. Offences and Penalties for Illegal Deposit of Refuse in City Parks and/or Public Lands As the proposed tipping fee increases could lead to increased incidents of illegal deposit of MSW or DLC in City parks and/or on public lands, it is recommended that the Offence and Penalty sections of Traffic Bylaw No , Road Right-of-way Usage Bylaw No , and Parks Regulation Bylaw No be updated to support enforcement. The Community Charter provides the City with the authority to set minimum and maximum penalties for non-compliance with City bylaws as well as the ability to seek orders imposed. To deter those who illegally deposit refuse to avoid tipping fees at landfills, it is recommended that the minimum penalty for illegally depositing refuse in contravention of a City bylaw be increased to not less than five hundred dollars ($500) and not more than ten thousand dollars ($10,000) (currently a range of $25 to $100), and that if an instance does occur, costs incurred by the City to remediate the situation be recoverable. 94
6 Page 6 Implementation Schedule and Communications Plan If Council approves staff's recommendation, education would be increased in fall 2014 to inform the public of the upcoming changes to the tipping fees. It is expected commercial customers will be impacted the most by the new fees. As such, the primary target of the education will be the current customer base, with letters being sent directly to the City's on-account customers well in advance of the implementation date. In addition to the letters, a media release will be sent out, as well as radio and newspaper notices. Also, there will be effective signage at both landfills communicating the charges and why changes are necessary. SUSTAINABILITY IMPLICATIONS The City's Landfill Diversion Program, including increased tipping fees, works toward the following goals outlined in the Sustainable Kamloops Plan: Reducing solid waste landfill to 0.3 tonnes per capita by 2020 (50% reduction); and Extending the potential service life of the Mission Flats Landfill to By implementing these new solid waste standards, the City is ensuring it is able to maximize its landfill diversion potential in the immediate future. These initiatives will support the Council Strategic Plan, which has a sustainability goal of increasing landfill diversion to 40% by Additionally, there are entrepreneurs who have attempted to establish new recycling options in Kamloops but have been unable to prosper because of low tipping fees. As the tipping fees increase, other businesses will flourish as the building and construction community will look for better alternatives to dispose of waste rather than landfilling. FINANCIAL IMPLICATIONS Staff are only able to estimate the revenue that will be generated from the proposed fee increases. The conservative revenue estimated is $600,000; however, this could change based on external factors that are out of the City s control. Staff recommend that, if approved, the additional revenue be taken into account when the Financial Plan is drafted later this year. CONCLUSION The attached proposed rate structure (Attachment "B") allows Administration to implement tipping fee increases at City-operated landfills. If approved, rate increases will take effect January 1, 2015, through an amended bylaw. The proposed rate structure also incorporates a differential tipping fee schedule and the continued education for diversion on recyclable materials. The proposed rates will align with the TNRD's RSWMP, which calls for the standardization of tipping fees across our region. 95
7 Page 7 ATTACHMENTS Attachment "A" - Tipping Fee Increase within the TNRD letter Attachment "B" - Proposed Landfill Rates J. Fretz, P.Eng. Public Works and Utilities Director Approved for Council Consideration: Concurrence: C. M. Kennedy, CMC, Corporate Officer S. E. Edwards, BBA, CMA, Finance Director Authors: G. Farrow, Streets and Environmental Services Manager R. Bregoliss, Solid Waste Services Analyst GF/RB/lm/dla Attachments 96
8 ATTACHMENT "A" 97
9 ATTACHMENT "B" City of Kamloops TNRD Material Current Proposed January 1, 2015 Units Municipal Solid Waste $60 $80 $80 Tonnes Minimum Load ($5) <= 100 Kg <= 60 Kg Load Comingled DLC $60 $160 $160 Tonnes Source-separated DLC (Unspecified) $60 $100 $100 Tonnes Wood Waste $60 $100 $100 Tonnes Gypsum $60 $100 $100 Tonnes Crushable Materials $5-$10 $20 $100 Tonnes Asphalt Roofing $60 $100 $100 Tonnes Asbestos $150 $180 Cost of Disposal + $100 Tonnes Carcasses and Offal $150 $180 Cost of Disposal + $100 Tonnes Bulky Furniture n/a $10 $10 Item Freon-containing Appliances $10 $15 $15 Item Tires $1 $2 $5 Tire Clean Fill (Uncontaminated) n/a $10 n/a Truck T:\PWU\ENVIRO SVS\REP\2014\Landfill Tipping Fees Attachment B.docx 98
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